Dayton, Inc. manufactured 15,000 units of product last month and identified the following costs associated with the manufacturing activity: Variable costs: Direct materials used $ 1,006,000 Direct labor 2,089,000 Indirect materials and supplies 233,000 Power to run plant equipment 214,000 Fixed costs: Supervisory salaries 945,000 Plant utilities (other than the power to run plant equipment) 295,000 Depreciation on plant and equipment (straight-line, time basis) 148,000 Property taxes on building 192,000.
Unit variable costs and total fixed costs are expected to remain unchanged next month. Calculate the unit cost and the total cost if 21,000 units are produced next month.
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